The Indian rupee gained in the early trade on Friday. It has opened higher by 11 paise at 69.76 per dollar versus Thursday's close 69.87.

On May 30 the rupee continued its slide on the third consecutive day as it was close marginally lower at 69.87 on the back of strong dollar.

Rupee is expected to open higher against the dollar on the back of Brent crude’s decline to a near-three-month low. Meanwhile, Trump announcement of tariffs on Mexican imports is expected to keep the rupee’s advance in check, said Motilal Oswal.

Washington threatened to impose tariffs on imports from Mexico. Trump, in an announcement reported that a 5% tariff would be levied on all goods from Mexico with effect from June 1 and tariffs would remain in place till Mexico takes effective action to alleviate the flow of migrants. Moreover, the announcement warned that tariffs would go up to 25% by October if Mexico did not take sufficient action.

Volatility for the currency could remain low ahead of important economic numbers that will be released tomorrow. Broadly, trade war concern is keeping most market participants on the edge. Today, USD-INR pair is expected to quote in the range of 69.75 and 70.20, it added.

Published On : 31-05-2019

Source : Money Control